An 18% cost savings was achieved through management delayering.
DMGT has long been an influential global media company. As the digital age dawned, the publisher had 80% of its business vested in print newspapers. It knew it needed to quickly adapt and grow revenues by moving into adjacent areas, including digital, B2B, and international.
In 2010, the company was realizing rapidly diminishing newspaper margins. If officials didn’t take action, 29% of DMGT’s revenues and 45% of its profits would be at risk by 2015.
Corporate leadership recognized they needed to make a fundamental shift in the company’s business model to survive in the digital economy. They turned to BCG to help enable a strategic turnaround. This effort would effectively manage and shape the traditional core business. It also would refocus the company’s B2C assets on international and digital growth and diversify into additional B2B platforms, such as subscription-based media.
DMGT officials had a large vision. Our experts helped bring it to fruition with a customized turnaround strategy that:
As a result of its proactive move and BCG’s program management and restructuring support, DMGT has become a digital media powerhouse, outstripping its UK and US competitors.
Its MailOnline site has enjoyed a rapid growth in traffic to become the world’s most-read online newspaper. The company has transitioned its portfolio from 80% print newspapers to 75% B2B assets, with the latter accounting for a 75% share of operating profits. It has also integrated social media into as many products as possible, which has strengthened its market perception and brand and increased opportunities for customer engagement.